With the 2026 FIFA World Cup finally here, we can all agree that there’s something extremely exciting about a major sporting event. Whether you’re a football fan or not, you’re sure to have noticed the way everyone comes together in support, and it’s nice to be part of the action. But what about the impact on the host nations themselves?
As we saw for ourselves at the London 2012 Olympics, hosting a major sporting event brings a great deal of excitement, fun and opportunity to a nation. This is something that those in the United States, Canada and Mexico will experience throughout June and July, when the FIFA tournament takes place. But along with the excitement, what does being the host of a sporting event really mean for the nation or nations involved? We know it’s an exciting time, but there are definite pros and cons to the economy.
The Economic Impact and Pros to Hosting a Major Sporting Event
For each of the three nations involved in the unprecedented joint hosting, putting on a major sporting event can have a hugely positive impact on the economy.
There’s an Increase in Tourism
Any major sporting event attracts visitors from around the world, leading to a huge boost in tourism. People from around the world will be flocking to the World Cup to see their favourite team, many more than would be visiting them during a standard summer. This influx of tourists benefits local businesses such as hotels, restaurants and shops, providing a substantial local economic boost
It Boosts Infrastructure Development
More often than not, hosting a major sporting event leads to improved infrastructure. This is because new stadiums have to be built, transportation networks need to be improved, and public facilities need to be put in place. Even in a huge city such as London, there was a huge infrastructure to make improvements before London 2012. This can have long term benefits for the host nations, contributing to economic growth even after the event concludes.
It Encourages Long Term Economic Growth
If used correctly, the investments made for a major sporting event can contribute to long term economic growth. Improved infrastructure, increased tourism and better connections with other nations can provide ongoing benefits, long after the sporting event has come to an end. The benefits of hosting a sporting event don’t end simply because the last whistle has blown and someone has been declared the winner.
It Creates Jobs
There’s a lot that goes into hosting a major sporting event, and the preparation and execution of such a large scale event creates numerous job opportunities. From construction projects to event management, from security to hospitality, a major sporting event of any kind can temporarily reduce unemployment rates in the host nation. Think about all of the football matches that will be involved in a World Cup tournament (104 matches in total, instead of the usual 64) in a tournament that brings together 48 national teams (instead of the usual 32) – these all have to be staffed by those in the local area.
It’s Great Exposure and Marketing
Hosting global sporting events puts the host nation(s) on the world stage, with global visibility showcasing it to an international audience. This exposure can lead to increased foreign investment, greater tourism and international visitors to the host countries in the future, plus a stronger brand. Such events are a way for the host nation to highlight what they have to offer, what they’re all about and what people can expect if they visit. It’s a way to share their culture, heritage and lifestyle. This is especially important if the host nation is somewhere that people might not know too much about, or they are looking to improve their global reputation, as seen with the Qatar World Cup in 2022.
The Downside of Hosting Large Scale Sporting Events on the Economy
Of course, along with the many pros, there are some downsides for the economy of host nations. Though any major sporting event, such as a football World Cup, Summer Olympic Games, Winter Olympic Games, Commonwealth Games, often gives the country’s economy a localised boost, there are some cons to be aware of.
The Economic Boosts Tend to Be Short Term
While the event may provide a temporary economic boost – FIFA estimates an extra $40.9 billion boost to global GDP and around 824,000 jobs directly and indirectly linked to the 2026 event – this does tend to be short lived. Once the event is over, the economies may face a sudden downturn, which can have negative consequences. This is especially true if the infrastructure investments don’t result in the long term benefits the host nations were hoping for.
It Incurs High Costs and Debt
The cost of hosting a major sporting event can be astronomical, often requiring huge investments and outgoings, even for nations that already have a lot of the infrastructure in place (as is the case for the US, Mexico and Canada where most of the required infrastructure is already in place). These costs can lead to significant debt for the host nation. It’s always hoped that these costs are eventually recovered by the boost to the economy and tourism, but there’s no guarantee.
The Infrastructure Isn’t Always Used
Once the event has come to an end, there’s always a risk that the infrastructure that’s been built, such as stadiums, venues, and transportation systems, will become underutilised or abandoned. Maintaining these facilities can be costly, especially if the host nation doesn’t have a stream of other mega events to use them for. They may not generate enough revenue to justify their construction. It’s not always easy to find a new use for stadiums and venues after the event has finished.
Inflated Costs for Locals
The surge in demand for goods and services during major events can lead to temporary inflation, which makes it more expensive for locals to live and do business. This can have a negative impact on the cost of living and local businesses that aren’t directly benefiting from the event. There have already been many reports of significantly inflated costs for travel and accommodation in the US related to the World Cup.
Projected Macroeconomic Impact of the 2026 Football World Cup
At a macroeconomic level, the impact of the World Cup is expected to differ between the host nations. Mexico is expected to be the main relative beneficiary, with around $3 billion in expected economic benefits, representing around 0.2% and 0.5% of GDP. For the United States, the impact of the World Cup is expected to be minimal, with the estimated $17 billion in additional GDP, amounting to less than 0.1% of US GDP. Canada is expected to record around $3.8 billion (CAD) in projected economic benefits.
These figures show that the economic impact of major sports events are not always as significant for the host nation(s) as first thought. The real impact is usually time-limited and highly localised. While there are some positives of hosting major sporting events, including economic, social and cultural benefits, host countries have to weigh up whether the investment is worthwhile and the event transformative enough for them to make it worthwhile.
With the 2026 FIFA World Cup finally here, we can all agree that there’s something extremely exciting about a major sporting event. Whether you’re a football fan or not, you’re sure to have noticed the way everyone comes together in support, and it’s nice to be part of the action. But what about the impact on the host nations themselves?
As we saw for ourselves at the London 2012 Olympics, hosting a major sporting event brings a great deal of excitement, fun and opportunity to a nation. This is something that those in the United States, Canada and Mexico will experience throughout June and July, when the FIFA tournament takes place. But along with the excitement, what does being the host of a sporting event really mean for the nation or nations involved? We know it’s an exciting time, but there are definite pros and cons to the economy.
